Verastem +7% after reaching oncology drug license deal for Japan

|By:, SA News Editor

Verastem (VSTM +7.4%) opens higher after establishing an exclusive licensing agreement with Japan's Yakult Honsha to develop and commercialize duvelisib for the treatment, prevention or diagnosis of all oncology indications in Japan.

VSTM says it will receive a one-time $10M  upfront payment from Yakult and could receive as much as an additional $90M if certain future development and commercialization milestones are successfully achieved by Yakult, plus double-digit royalties based on future net sales of duvelisib in Japan.

Yakult will receive exclusive rights to develop and commercialize duvelisib in Japan at its own expense, and will fund certain global development costs on a pro-rata basis; VSTM will retain all rights to duvelisib outside of Japan.